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2015 (10) TMI 2183 - HC - Income TaxReopening of assessment - assessee's return was assessed u/s.143(3) at ₹ 46,48,050/- out of which income from share trading amounting to ₹ 41,95,223/-was assessed as short term capital gain at special rate of ₹ 10% - Held that:- Materials produced by the petitioner either in response to the queries raised by the Assessing Officer or voluntarily, leave no manner of doubt that full details to enable the Assessing Officer to take a view whether the income of the assessee from trading of shares should be taxed as capital gain or business income, was on record. The Assessing Officer had raised multiple questions calling for documentary proof in certain cases. All these questions pertain to the assessee's declared income from sale of shares. If not strictly speaking in the sequences in which the questions were raised, nevertheless at least in the stock summary full details were laid before the Assessing Officer. If during such assessment the Assessing Officer was of the opinion that the activity carried on by the assessee was in the nature of business of buying and selling shares, he could as well have expressed such opinion in the assessment order and taxed the income accordingly. By no stretch of imagination, could it be stated that on account of failure on the part of the assessee to disclose full and true material facts, he came to erroneous conclusion and accepted the assessee's stand that the income was in the nature of capital gain. To reiterate, during the original assessment in response to various queries raised by the Assessing Officer, the assessee made full disclosures. Full facts were thus before the Assessing Officer to ascertain whether the income was in the nature of business income or capital gain. He having taken a particular view, reopening beyond the period of four years would not be permissible. - Decided in favour of assessee.
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